Intensity of Agricultural Land Use and Land Market Activities in the Central Economic Region in Russia

Abstract

The record shows that the intensity of agricultural land use in the Central Economic Region is lower than in the Central Chernozem Economic Region of the Central Federal District of the Russian Federation. This data is confirmed by the indicators of the significant reduction in the area of agricultural land, the low specific weight of crops in arable land, and the low cost of gross average output received per one ha of agricultural land in the region. The agricultural land market in the Central Economic Region is higher than in the Central Chernozem Economic Region, which is primarily due to the high demand for residential real estate near the capital and major cities of the district, which also encourages the transfer of agricultural land to other categories and uses. Differences in prices for agricultural land between areas of the Central Economic Region are caused mainly by the differences in socio-demographic factors and their proximity to Moscow and Moscow Region. The average size of a land plot for purchase and sale in the areas of the Central Economic Region bordering the Moscow Region is less than in the non-bordering areas. Transactions involving large land plots predominate in the market circulation of agricultural land in the Central Economic Region. Patterns of price formation for such plots determine the average specific indicator of prices for agricultural land in the areas of the region.